By FRANK L. KLUCKHOHN

Special to The New York Times

Tank Battle South of Manila, Losses Heavy: Fighting Is Bitter: Defenders North of the Philippine Capital Strengthen Lines: Oil Afire in Manila: Japanese Planes Go On Bombing
Port Area Despite 'Open City'

New Enemy Force 175 Miles Above Singapore: New Malaya Peril: Japanese Patrols Are Nearer to Singapore in Two Districts: Chinese Join Battle: British Total of Losses Is Reduced
Greatly When 'Lost' Units Appear

Dutch Again Sink Ship Off Sarawak: Destroyer or Transport Hit by Bomb From Great Altitude, Raising Total to 16

Washington, Dec. 26.--Winston Churchill, the first wartime Prime Minister of Great Britain ever to address the Congress of the United States, told that body today that anti-Axis forces probably will
be able to undertake a world-wide offensive in 1943.

He warned bluntly that "many disappointments and unpleasant surprises" await us, but added that we were today "masters of our fate" and that "mighty strokes of war have already been dealt against the enemy."

In a historic report in the Senate chamber on the progress of the war the British leader moved members of both houses and the Cabinet and justices of the Supreme Court, as well as foreign diplomats,
to wild bursts of enthusiasm and deep chuckles of mirth. His speech, which lasted more than thirty minutes, was typical--full of bubbling humor, biting denunciation of totalitarian enemies, stern
courage and hard facts.

So confident of ultimate victory was he, so certain that mounting Anglo-American armaments would spell defeat of Hitler, Mussolini and the dominant military and naval "secret societies" of Japan, that he chose today's symbolical meeting
to declare that the United States and Britain must stand together after this war as they stand shoulder to shoulder in it "to make sure that these catastrophes do not engulf us" for a third
time in a generation.

Points to Nazis' Wounds

"If we had kept together after the last war, if we had taken common measures for our safety, this renewal of the curse need never have fallen upon us," Mr. Churchill said.

"Do we not owe it to ourselves, to our children, to tormented mankind, to make sure that these catastrophes do not engulf us for the third time?" he asked his audience, and evoked a wave of applause.

The political leader of 500,000,000 in the British Empire at war pledged that the Allies would persevere against the Japanese "until they have been taught a lesson which they and the world will never forget." He declared that Russia and Britain
in Libya had inflicted wounds on the Nazi "tyranny and system" which had cut deep "and will fester and inflame" in both the Nazi body and mind. With cheerful scorn he remarked
that "the boastful Mussolini has crumpled already" and was "a lackey and serf, the merest utensil of his master's will."

The undertone of the Prime Minister's speech was that Americans could take bad news and surmount it, and he stated flatly that "some ground will be lost which will be hard and costly to regain." He warned that the United States, like Britain
at the start, was "at a disadvantage which only time and untiring courage can correct."

Looks to Increasing Power

Even though the Allies have the greatest potential strength, it is not yet mobilized and the forces ranged against us not only are enormous but also are bitter and ruthless, he warned.

On the optimistic side, Mr. Churchill mentioned the terrific blows dealt to Germany by Russia and the fact that, with equal equipment for the first time, the British had beaten the Germans and Italians in Libya.

"I think it would be reasonable to hope that the end of 1942 will see us quite definitely in a better position than we are now," he remarked. "And that the year 1943 will enable us to assume the initiative on an ample scale.

In relation to "the grand proportions of human history," he added, whether deliverance comes in 1942, 1943 or 1944 means little when balanced against the fact that we are jointly defending not only homes and hearths but "the cause of freedom
in every land." Not the least of the good tidings available, he emphasized, was that "the United States, united as never before, has drawn the sword for freedom and cast away the scabbard."

This had given the downtrodden people of conquered countries new hope and made certain that their flame of anger against "the brutal, corrupt" invader and the "filthy Quislings" would
never die.

Of the situation in the Western Pacific, the Prime Minister said the Japanese onslaught, "so long and so completely planned," had brought to the United States and Britain "grievous problems
for which we could not be fully prepared."

Had Britain "diverted and dispersed" her "gradually growing resources between Libya and Malaya," she "could have been found wanting in both places."

"If the United States has been found at a disadvantage at various points in the Pacific Ocean," he continued, "we know that that is to no small extent because of the aid which you have been giving us in munitions for the defense of the
British Isles and to the Libyan campaign and, above all, because of your help in the Battle of the Atlantic, upon which all depends."

The Battle of the Atlantic, he went on, was being successfully waged by the United States and Britain.

The choice of "how to dispose of our hitherto limited resources had to be made by Britain in time of war and by the United States in time of peace."

"And I believe," he declared, "that history will pronounce that upon the whole--and it is upon the whole that these matters must be judged--the choice made was right."

Strong applause--clapping and cheering--came when Mr. Churchill mentioned the "glorious defense of their native soil by the glorious Russian armies and people," and again when he mentioned China's checking of the Japanese.

As to Japan's act in plunging in one day into war against the United States and the British Empire, Mr. Churchill remarked that it was well the Japanese leaders had not picked "our moment of
weakness" eighteen months ago.

The Japanese might think today that they saw "their way through." But perhaps there was a better explanation, he said, noting that "secret societies" of junior Japanese Army and Navy
officials had dominated Japanese governments for a long time through the process of assassinating officials of the Japanese Government who would not do their will.

"It may be that these soldiers, dazzled and dizzy with their own schemes of aggression and the prospects of early victory, have forced their country against its better judgment into war," he observed.

After the outrages "they have committed upon us" at Pearl Harbor, in the Pacific islands, in the Philippines, in Malaya and in the Dutch East Indies, these Japanese must know they have entered a mortal conflict. Considering the resources of
the United States, the British Empire and China, and "the Russian menace which hangs over Japan," it becomes still more difficult "to reconcile Japanese action with prudence, or even
with sanity."

"What kind of a people do they think we are?" Mr. Churchill asked. "Is it possible they do not realize that we will never cease to persevere against them until they have been taught a
lesson which they and the world will never forget?"

Here the Prime Minister received a great burst of applause, the crowded floor and galleries rising as one man to cheer him.

It was for the latter part of his speech, however, that the Prime Minister reserved his greatest earnestness.

Twice in a single generation the catastrophe of world war had fallen upon the world, he recalled. Twice the United States had been involved. That the New World could not escape "the pestilences," once they had broken out in the Old, had been
proved.

In the future, he emphasized with deep solemnity, duty and prudence demanded that "the germ centers of hatred and revenge be constantly and vigilantly curbed and treated," and that "an adequate organization" be set up "to make
sure that the pestilence can be controlled at its earliest beginnings before it spreads and rages through the entire earth."

Five or six years ago the United States and Britain jointly could have prevented German rearmament, could have prevented the war which has engulfed the world.

The Prime Minister declared his hope and faith that, in future days, "the British and American peoples will for their own safety, and for the good of all, walk together side by side in majesty, justice and in peace."